Multiple Choice
The first digit in the account number 520 indicates that the account is in the:
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1. Introduction to Accounting
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It is required that you have good _______ in order to purchase a home.
A
inventory
B
credit
C
depreciation
D
liabilities
Verified step by step guidance1
Step 1: Understand the context of the question. The problem is asking about a financial concept necessary for purchasing a home. This relates to personal finance and creditworthiness.
Step 2: Define the key terms provided in the options: 'inventory,' 'credit,' 'depreciation,' and 'liabilities.' For example, 'credit' refers to the ability to borrow money or access goods/services with the promise to pay later, which is crucial for securing a mortgage.
Step 3: Analyze why 'credit' is the correct answer. Purchasing a home often requires a mortgage loan, and lenders assess your credit score and history to determine your eligibility and interest rates.
Step 4: Eliminate incorrect options: 'inventory' relates to goods available for sale, 'depreciation' refers to the reduction in value of an asset over time, and 'liabilities' are obligations or debts owed by a person or entity. None of these directly pertain to purchasing a home.
Step 5: Conclude that 'credit' is the correct answer because it directly impacts your ability to secure financing for a home purchase.
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